1. Quarter ending 31 December 2016 2016/2017Financial Year
Finance Report
Quarter ending 31 December 2016
2016/2017Financial Year
The presentation provides summaries of financial management matters and results that were subjected to oversight by the Finance Committee and Audit Committee.

2. The Purpose of the presentation is in response to this extract from the invitation letter by PC
Financial Performance
A brief overview of the financial report of the CGE. Expenditure per programme
An overview of the CGEs management of income, expenditure, transfers, cash and assets, as well as the state of its financial management systems – achievements and challenges.
Audit Action Plan
Brief overview of the recommendations of the AGSA on the 2015/2016 annual report
Progress and implementation of AGSA recommendations.
Clear indication for each recommendation what the plan of action is, the key person responsible, time frame (specific), cost implications if any
Progress and implementation of BRRR of 2016

3. Table of contents Financial Performance Financial Position
Financial Management system
Audit Action Plans
Budgetary Review & Recommendations Reports

6. Overview – Income and Expenditure
3 months (Q3 – Oct to Dec 2016)
Cumulative to 31 Dec 2016
Total income was R18, 4 million of which –
Transfers from NT were R17, 4 million
Donor, Interest & other – R 1 million
Total Expenditure amounted to R18, 4 million
For the 3 months’ period, a break-even (Income equals expenditure) was reported. This was mainly due to the short period (holidays) of operations and the effect of a reduction in the leave provision recorded during December.
Total income for YTD. R54, 6 million of which –
Transfers were R52, 6 million
Donor Income was R1,8m (SABC)
Interest and other sundry receipts were R396, 000
Total expenditure came to R58, 6 million
Year to date deficit of R3,8 m was recorded.
There are mitigating plans in place to avert deficits/unauthorised expenditure by the end of the financial year

7. YTD (Dec. 2016) Expenditure per programme and economic classification

9. Financial management systems
Achievements
Challenges
ICT systems improvements
Main infrastructure
Accounting systems upgraded
Continuous improvements in the internal control environment
Resolved and implemented AGSA recommendation on key controls
Anticipated budget and cash-flow management pressures due to budgetary reductions.
A few accommodation related issues. However, NDPW is actively assisting
Pending regularisation of expenditure by National Treasury

10. Audit action plans…..An overview
AGSA Audit Report for 2015/2016 Financial year – Clean Opinion without any matter brought to the attention of users of the Financial Statement, Pre-determined Objectives’ report was unqualified and no material non-compliance with key legislation was identified and expressed by AGSA. However, recommendations were made to address control weaknesses on:
Internal control weaknesses ( substantially resolved)
Human Resources Management
Information Technology
Procurement and Payments of service providers
Asset Management
Pre-Determined objectives
Expenditure Management
Audit Plans of Action were implemented in line with the recommendations by AGSA – Schedule attached as annexure

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12. Annexures

13. Key notes on financial performance
Income and spending activities for the 2016/2017 were against a context of budgetary reductions from the fiscus in the past two periods (2015/16 – R3,1 m; 2016/2017 – R4,6 m). The reductions put a strain and pressure on the operations of the CGE. In this regard:
- For the year – to- date, All income due and receivable was recorded at R54, 6 million (Including R52 m transfers)
- Overall cumulative spending incurred at R58, 6 million as at 31 December 2016
Therefore total spending exceeded the budget (R55 m) and income resulting in an accumulated deficit of over R3 million.
Key expenditure drivers are shown in the ensuing slide……………

15. For SO1:
Expenditure Year to Dec 2016 represented 78% of the annual budget for the SO.
Targets achieved consistent with APP.
Efficiency gains noted in line with cost containment initiatives under-taken.

16. For SO2:
For the period to end of Dec 2016, 78% was spent, also consistent with the achievement of the related performance target.
No variance anticipated by the end of the financial year, whatsoever
Efficiency gains noted in line with cost containment initiatives under-taken.

17. For SO3: 41% of the annual SO budget spent so far.
Main contributor to spending is COE at R1.6 million. Officials time collecting data and drafting of reports – AGDI, CEDAW and attending meetings and conferences organised by regional and multi-lateral organizations e.t.c
Ordinarily, activities related to SO are saturated during the 4th quarter of the financial year. Therefore the remaining budget will be fully utilised by the end of the FY

18. For SO4:
Overall 97% recorded. Actual expenditure includes R1, 6 m depreciation & R1,8 m (donated by SABC) – not budgeted for
Higher spending rate:
Financial management due to regularity audit fees
Information Technology due to the investment project (Final leg of the project concluded in Q1)